cloud apps world 2014

Cloud Apps World Excel London November 12. 2014 1

BITSABusiness/IT Strategy & Architecture

Cloud Apps World Europe

Unlocking the value of Big Data/Analytics

Linkedin: Steef Klein


Comprehending the challenges of storing and understanding big data Best practice in using the cloud to better manage data (big and small) Examining the benefits: Case study examples of cloud data management optimising

ROI

Analysis: What tools are available to use the cloud to analyse big data and boost its value?

Security considerations: Necessary steps organisations should take to safeguard data accessed via the cloud

Data Management Panel Unlocking the business value of integrating data into the cloud

#Appsworld: November 12. 14:00


Big data competitors. These are organizations that have access to extensive information from operations or customer relationships, and use that data intensively. Examples include investment

firms and functions such as marketing.

Overachievers. These are organizations that have limited access to data, but are committed to using it as much as possible to inform decisions. Examples include consumer packaged goods

companies and operations departments.

Underachievers. These are organizations that have access to extensive information, but fail to take advantage of it. Examples include telecom companies, and finance and sales departments.

Disadvantaged. These are organizations with limited access to data that rarely use information to support the business. Examples include healthcare and human resources.

Big/Data analytics The industries willingness to use it.

Source: Thomas Davenport


The rise of the 3rd platform Dedicated, agile and integrated solutions will prevail

In 2020 > 90% of the total IT industrys growth will be based upon 3rd platform initiatives

The industrys 3rd platform revenue will be 40% of the total IT industry's revenue A mature 3rd platform will support all SMACT building blocks.

Source: IDC SMACT: Social business, Mobile solutions, big-data/Analytics, Cloud services & internet of Things


SMACT Building Blocks Social business, Mobile solutions, big-data/Analytics,

Cloud services & internet of Things


Cloud Computing Services SMACT is on the move

In 2014, parts of SMACT has reached the plateau (aPaaS, SaaS, mobile) Big Data is lagging; software industry must integrate this within aPaaS IoT is on the radar, but still needs time to mature Cloud Services, aPaaS, Mobility, SaaS, iPaaS, will reach plateau within 2 years. Social Technologies not mentioned (from IDC), but is embedded within aPaaS, Mobile, etc

Source: Gartner


Mission, Vision & Strategy Many companies struggle with the execution

Over 50% of all European companies have a negative Free Cash Flow to Firm (Equity) -2013- Many of these companies struggle to lower their WC, COGS, etc. A sound strategy in combination with an embedded business model change is needed Previous too complex 2nd platform related IT solutions prevented a successful roadmap

Source: Aswath Damodaran

Process

Learning&Growth

Financial

Customer

STRATEGY MAP BALANCED SCORECARD ACTION PLAN

Process

ThemeOperations Management Objectives Measurement Target Initatitives Budget

Operating Margin

Return on Capital

Revenue growth

On time,

error free

delivery

Short delivery

timeInnovative

value added

products

Improve

Quality

Optimize Supply Chain

& Manufacturing

Processes

Value Streams &

Intelligent equipment.

Strategic SystemsDecision making environment

Big Data/Analytics supportMobile solutions

High degree of flexibilitySkilled and trained workforce

Social manufacturing environmentChange Innovation process (IT)

Middle Management/

Workforce alignment

Improve ProfitabilityImprove present and future excess investment returns

Increase Revenue

Right, error free, on time parts

Be close to the customer Deliver intelligent value

stream equipment

Initiate Quality Control Program

Best in class supply chain & manufacturing KPIs

Identify Value Streams; Use Mechatronica

Middle Management & Workforce aligned with

strategy

Develop the necessary skills (Lean/Six sigma)

Implement modern systems

Reorganize R&D, multidisciplinary teams

Acquire IT personnel Introduce SCRUM

Market value percentageOperating income (EBIT)Return On Capital (ROC) Free Cash Flow to Firm growth (FCFF)

On time delivery to commitDelivery timeCustomer retention rateNew customers

> 99% < 2 days> 90% > 10% of Revenue

>30% > 15% of revenue > 12,5 % > 7,5% annually

Total supply chain costsOrder fulfillment lead timeKey components material availabilityInventory turnover rateReturn on R&D investment

8 > 18%

Strategic awareness

Strategic job readiness

Systems availability

Reorganization readiness

Profiles & acquisitionSCRUM certification

Yr1 100%

Yr1 75%; Yr2 100%

Yr1 - 75%; Yr2 100%

Yr1 100%

Yr1 100%Yr1 80%; Yr2 100%

$ XXX $ XXX $ XXX $ XXX $ XXX

$ XXX $ XXX

$ XXX $ XXX $ XXX

$ XXX

$ XXX

$ XXX

$ XXX

Global processes Standardize local factory processes

Extend Service networkHunter approach

Renew ERP Implement MES (Incl. Quality)

Implement APS (SOP)Improve CRM usage Strengthen PLM

Global Strategy Program

Job profiles, training

Communications program

Develop training schedule & execute


Optimising your ROI using the 3rd platform Average annual cost savings about $730K per 100 users

WC and COGS reduction not taken into account. A 50% reduction of the total supply chain costs is possible within companies which are laggards.

44%

14%

34%

9% Business productivity

Infrastructure cost reduction

IT staff productivity

User productivity

Source: IDC


High level supply-chain metrics Improving KPIs

Source: SCOR


On premise based Capex & Working Capital

Revenue 700.000

EBIT(1-t) 45.000

Total WC (15% of revenue) 105.000

Total Capex 42.000

IT Capex (3% of revenue) 13.704

Total Capex depreciation 33.600

Change in NCWC 0

FCFF 36.600

Cloud based Capex & working Capital

Revenue 700.000

EBIT(1-t) + internal IT Opex 46.824

Total WC (11.25% of Revenue) 78.750

Total Capex 37.686

IT Capex (2.1% of revenue) 9.390

Total Capex depreciation 30.149

Change in NCWC -26.250

FCFF 65.537

Operational Excellence improvement The possible influence of Enterprise aPaaS on Operational Excellence

(An example Figures are indicative)

Revenue of a medium sized manufacturing company Starting WC is 15% of revenue; based on average WC research in the Mfg industry sector. Best in class companies have a Non Cash Working Capital lower than 10% of revenue An optimal supply-chain can reduce NCWC with 50% when a more complex supply-chain is at hand.

In this example the operating Income Margin (tax rate) equals 6.4% of revenue. (Laggard) The FCFF rises with 168%; the intrinsic value of the company , which is calculated over multiple years will increase.

A business plan written for many manufacturing companies with a sound strategy will in most cases result in moving from a laggard to a best in class company.


How to improve your equipment OEE How can the OEE of an important asset be improved.

Down time: $100,000 revenue loss each hour. Move to predictive or prescriptive maintenance. Use Big-Data/Analytics to gather and analyze the information, Use the SMACT building blocks in order to inform responsible management. Use Hadoop to gather and process the data from a variety of sources. Use e.g. Apache Mahout, a Hadoop add-on, to create predictive algorithms. Use NewSQL or Graph databases to store collected data. Use an Enterprise aPaaS solution to retrieve and display the information.

Source: Big Data Predictive Analytics for Proactive Semiconductor Equipment Maintenance: A Review


Enterprise aPaaS Platform

Clu

ste

r

Data Store

5

Ne

wS

QL

or

Ne

o4

j

Gra

ph

Da

tab

as

e

Business

Logic

Predictive

Algorithms

6 1

2

Data

Mapping &

Reducing

Qu

ery

an

d D

isp

lay

An

y U

I

Init

ial d

ata

fil

teri

ng

& f

orm

att

ing

4

3

4 Create predictive algorithms inside Hadoop add-on

5 Store all relevant data into a NewSQL or Graph database

6 Use aPaaS platform+add-ons to

display end-results

1 Define the different sources to mine

3 Map/Reduce data in Hadoop cluster

Retrieve initial data and filter and

format data within aPaaS platform 2

Big Data/Analytics Use case example


Cloud services and security Will public Cloud services be accepted by the industry?

Having your own Enterprise App store is essential. Monitoring & controlling enhances corporate security, industry compliance and employee

productivity.

If your aPaaS platform has a FISMA compliancy it will be certified and accredited by the US Government.

New dedicated, multi-tenant government instances will allow U.S. federal, state, and local agencies to rapidly deploy the latest social and mobile technologies in compliance with

FISMA requirements.

New AppExchange for Government delivers the app marketplace where agencies can find, try and deploy cloud apps for the public sector.

New Government Partner Accelerator Program will train an army of 1,000 integrators to transform government IT with salesforce.com cloud solutions.

Two-thirds of U.S. federal Cabinet-level agencies and governments in more than 80 percent of U.S. states trust salesforce.com to power their social enterprises.

The most eloquent example:

The US government accepts Salesforce1s aPaaS solution as a secure platform, which is FISMA compliant.

FEDERAL INFORMATION SECURITY MANAGEMENT ACT (FISMA)


Available aPaaS development environments Some available tools to support complete SMACT

Heroku

Worlds most powerful aPaaS polyglot platform.

Elastic Beanstalk

Amazons aPaaS solution

Azure

Microsofts aPaaS solution

AppFog

An aPaaS differentiator

Acquia

The Drupal only platform

Salesforce1

The leader in Gartners aPaaS magic quadrant Openshift

Red Hats aPaaS solution

Engine Yard

Ruby, PHP and Node.js

Google App Engine

Java and Python

CloudBees

Primarily Java

Cloudera Enterprise

Hadoop based

Enterprise Datahub Services

Joyent

An independent aPaaS solution


BITSABusiness/IT Strategy & Architecture

cloud apps world 2014

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